Many startup & entrepreneurs are looking for an ideal opportunity to launch their business in the market. To begin a venture, it is important to know how much it cost to launch your business and what are the things needed.
Taxi booking business is the most reliable business in the market and it retains its position at the top of the food chain. From a recent report, “by 2020 revenue generated by taxi booking business reach approx 3000 million $”.
Not only the taxi business has demand & revenue, but it also has a lot of potential opportunities for newcomers to launch their business. You can start your business small with minimum investment. Here, we are going to discuss the budget to start a cab business.
Different Type Of Business Idea Behind Cab Business:
In the taxi industry, you have many options to launch your business. You must decide your niche to begin your venture. Here are some different types of taxi business ideas.
Kids Taxi
Taxi for women
Taxi for disabled
Taxi for water service
Taxi for Airport & Railway station.
Car rental
Cost Analysis For Starting A Taxi Business:
Vehicle Cost:
Even though you can begin your venture on a small scale, you need at least 1 or 2 vehicles to start your business. It is your choice whether you can go for a new or old vehicle. You should at least allocate 15000 $ for vehicle expenses.
You should also think about the expense for the accessories of the vehicle like a taxi meter, cargo box, logo stickers and so on.. It is also important to work on the customization of the vehicle & make it ready for inspection.
Business License:
Every business owner must register their business by applying for a proper business license. It is important to prepare your vehicle & other information for inspection. You need to spend around 1000 $ to get a business license of your own.
Insurance:
The insurance amount for a vehicle based on your geolocation and local laws. It is better to connect with an insurance agent to choose better insurance for your vehicle. It is estimated around 2000 $ for insurance & other costs of the vehicle.
Office Space:
It is important to have space to be registered as your office. Your office space must be feasible for dispatchers team and good enough garage space to park your vehicles. It is better to be in the downtown so that, it will be easy for the drivers to pick up passengers and save a lot to fuel for you.
You should allocate some of your budget for your office space and employee salary to manage your business. It comes around 5000$ for at least the first six months.
Taxi App Development Solution:
In this digital era, it is important to have a digital presence for your taxi booking service. The mobile apps & web apps help you to reach many people. It makes easy for people to connect with your business.
Your online presence will reduce the cost of your marketing expenses. For building an app like Uber or a taxi booking app, it may cost around 999- 4999$.
Summing UP:
To launch your business, It takes a minimum of 30000$ as a base investment to launch your business. I have given you an average estimate and the amount may vary for you.
I hope this blog will give you an idea about your business.
Thanks.